HC Deb 25 July 1990 vol 177 cc545-6

'.—(1) Section 57 of the Solicitors Act 1974 (non-contentious business agreements) shall be amended in accordance with subsections (2) to (4).

(2) In subsection (2) (method of payment which may be agreed), after the words "gross sum" there shall be inserted "or by reference to an hourly rate".

(3) In subsection (4), for the words "Subject to subsection (5)" there shall be substituted "Subject to subsections (5) and (7)".

(4) After subsection (5) there shall be inserted the following subsections—

"(6) Subsection (7) applies where the agreement provides for the remuneration of the solicitor to be by reference to an hourly rate.

(7) If, on the taxation of any costs, the agreement is relied on by the solicitor and the client objects to the amount of the costs (but is not alleging that the agreement is unfair or unreasonable), the taxing officer may enquire into—

  1. (a) the number of hours worked by the solicitor; and
  2. (b) whether the number of hours worked by him was excessive."

(5) In section 59(1) of the Act of 1974 (method of payment which may be agreed in contentious business agreement) after the words "gross sum" there shall be inserted "or by reference to an hourly rate".

(6) In section 60(1) of the Act of 1974 (which among other things provides for section 69 of that Act not to apply to contentious business agreements), after the word "or" there shall be inserted "(except in the case of an agreement which provides for the solicitor to be remunerated by reference to an hourly rate)".

(7) In section 61 of the Act of 1974 (enforcement of contentious business agreements), the following subsections shall be inserted after subsection (4)—

"(4A) Subsection (4B) applies where a contentious business agreement provides for the remuneration of the solicitor to be by reference to an hourly rate.

(4B) If on the taxation of any costs the agreement is relied on by the solicitor and the client objects to the amount of the costs (but is not alleging that the agreement is unfair or unreasonable), the taxing officer may enquire into—

  1. (a) the number of hours worked by the solicitor; and
  2. (b) whether the number of hours worked by him was excessive." '.—[The Attorney-General.]

Brought up, and read the First time.

The Attorney-General

I beg to move, That the clause be read a Second time.

This is a modest amendment that was made at the request of the Law Society. It provides that an agreement between the solicitor and his client about the solicitor's hourly charging rate may constitute a contentious or non-contentious business agreement. Those to whom the clause matters will understand that language.

Mr. Vaz

I support the new clause. My constituents sometimes complain that they do not know how much they are being charged by solicitors. They wait until the end of their cases and when they receive the bill, they inevitably feel that they are being charged too much. That applies not only to those who receive legal aid but lo those who do not. It is appropriate that, when the client goes initially to see a solicitor, he and the solicitor should agree an hourly rate. That is in the consumers' interest, and the rate should be supplied by the solicitor in writing so that it is clear from the start exactly how much the client is to be charged.

Mr. Temple-Morris

We are proceeding so fast that one does not have time to say thanks. The Law Society has asked me to say that it is extremely grateful for the co-operation on new clause 22. In order to save time later, I should also like to say that there is general gratitude for the co-operation that has prevailed on many new clauses, not least the next groups with which we shall deal, beginning with Government new clauses 22, 23 and 27.

Question put and agreed to.

Clause read a Second time, and added to the Bill.

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